Suppose the spot exchange rate today between the US dollar and currency of country W is US $1.9905 per unit of currency of country W, and that for the US dollar and the currency of country V is US $0.00779 per unit of country V.  The following forward rates are also quoted today:   Country W Currency Country V Currency 30 days 1.9908 0.007774 60 days 1.9597 0.007754 90 days 1.9337 0.007736 Explain what someone who enters into a 30-day forward contract to deliver the currency of country W is agreeing to do? Explain who someone who enters into a 90-day forward contract to buy the currency of country V is agreeing to do? What can you infer about the relationship between US and country W’s short term interest rates and US and country V’s short-term interest rates?

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